RE: Why A Bitcoin ETF Will Change Everything For All Cryptocurrencies
An ETF will provide an on-ramp for fiat value to enter the crypto economy. This will be by far the biggest benefit of the ETF. Existing on-ramps are way too small and sketchy to handle any meaningful amount of fiat value; once a listed security is available on a major exchange we will witness billions and likely trillions of fiat wealth pour into the crypto economy. GBTC and XBT Tracker are only available to a small slice of the investment world as they are OTC and on a Nordic exchange, respectively.
It is really the ripple effect that will revolutionize the crypto economy: let's say the Wink ETF goes live and BTC skyrockets to $40k/BTC. As someone with real BTC in a real wallet, what do I do? Leave it all in BTC? Nah. Now I want to diversify. But I despise the fiat markets, so I'm not going to diversify into Treasuries or SPY. I'm going to buy BTS, SP etc. And boom! Rising tide lifts all ships.
The only thing that sucks is that for low to mid value BTC users, we wont actually be able to move our coins into the ETF. Im not 100% sure what the minimum is right now but I believe it is somewhere around 1000 btc.
Just hodl the real thing.
Which one would you rather have? Gold ETFs, or the real deal?
Prescient.
And yes, you get it man. Guys this is an explanation of what's happening that really puts it all together in 4 minutes.
There are benefits to having both. Personally even if I could, I wouldnt move all the bitcoin I have into a bitcoin etf, but I would move a portion, maybe around half. Each offers a different advantage.
If the ETF is listed, you just buy it through a broker on the exchange like any other stock. To get your money out, you would sell for fiat on the market. It has nothing to do with any BTC in a wallet where you would continue to control the keys, or BTC that you would use for personal transactions. You wouldn't be buying BTC. You would be purchasing a security - same as how the gold & silver ETFs are structured. The ETF is not the same as owning BTC. It is a derivative that tracks the price movements of BTC.
Yes, but that is if they truly believe all cryptocurrencies are created equal. We need steem to keep gaining traction as well. Having the 4th highest market cap in the crypto universe certainly helps... if we can hold onto it.
Sure but Bitcoin has a bad reputation. Why should anyone with a lot of money from the legitimate world want to hold Bitcoin? Bitcoin isn't stable like gold and is known to drop in value. Also Bitcoin held in vaults get hacked regularly and the developers choose to do nothing to prevent it. This means to most people Bitcoin is basically just a hacker currency.
Bitcoin is now more associated with Mr. Robot than with investments. It's not likely to ever change because once a brand name is damaged it's just gone. I think it's time to move beyond Bitcoin if you're trying to do an ETF and just have a digital currency ETF.
Negative interest rates, inflation and diversification. We will see fiat value flood into BTC as soon as the ETF pipeline opens up.